News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:🇯🇵 Unemployment Rate (SEP) due at 23:30 GMT (15min) Expected: 3.1% Previous: 3.0% https://www.dailyfx.com/economic-calendar#2020-10-29
  • - #Biden is leading in the polls but a last-minute surprise could be in the cards - #Covid-19 case spike, fiscal stalemate souring sentiment and derailing outlook - #AUDUSD puncturing support at 0.7018 may open the door to further declines https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/10/29/AUDUSD-Selloff-May-Deepen-With-Stalemate-on-Fiscal-Talks-Biden-Leads.html
  • The Dow Jones will look to earnings from Apple, which was once the largest component of the index. Get your #Dowjones market update from @PeterHanksFX here: https://t.co/X9sHddneM4 https://t.co/yhKKhjd7Kr
  • The Indian Rupee may weaken following a breakout higher in USD/INR. Despite rising global stock market volatility, the Nifty 50 has been holding its ground. Could it capitulate lower? Find out from @ddubrovskyFX here:https://t.co/BNJ5uTKz1A https://t.co/x0YxwlKWaR
  • Relief rally ahead for $AUDNZD? Bullish RSI divergence at key psychological support (1.0600) suggests a rebound back towards the 21-MA (1.0626) and 50-MA (1.0659) could be on the cards Conversely, a break below 1.0590 probably opens the door for further losses. $AUD $NZD https://t.co/1zUvYXyLBh
  • WTI Crude Oil fell to a fresh four-month-low this morning. This fresh low broke through range support that’s held for the better part of two months. Get your #crudeoil technical analysis from @JStanleyFX here: https://t.co/UMeWEIrTSh https://t.co/a3Ujc3Rf2z
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.02% 🇳🇿NZD: -0.16% 🇦🇺AUD: -0.25% 🇬🇧GBP: -0.42% 🇨🇭CHF: -0.59% 🇪🇺EUR: -0.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vspt9gv2qH
  • Nasdaq futures pivot sharply lower in the wake of earnings from $AMZN, $GOOGL, $FB and $AAPL, which comprise over 35% of the tech-heavy index collectively. $NQ_F $NDX still trading positive on the day. https://t.co/w5yqbxsqjb https://t.co/4jxdwQY8yo
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.13% Silver: -0.55% Gold: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Lgi1Jei5qJ
  • Apple earnings: EPS $0.73 vs $0.71 est Revenue $64.70B vs est $63.47B $AAPL
New Zealand Dollar Tumbles as RBNZ Disappoints Rate Hike Bets

New Zealand Dollar Tumbles as RBNZ Disappoints Rate Hike Bets

2017-05-10 22:04:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • The New Zealand Dollar depreciated as the RBNZ held rates unchanged in May as expected
  • Recent positive economic news-flow out of New Zealand helped build RBNZ rate hike bets
  • The central bank practically dismissed those hopes, mentioning recent CPI gains as temporary

Have a question about why the New Zealand Dollar did what it did? Join a Q&A webinar and ask it live!

The New Zealand Dollar depreciated against its major counterparts after the RBNZ held rates unchanged in May as widely expected. While that was priced in, recent positive economic news-flow out of the nation has helped build interest rate hike expectations. In particular, the unemployment rate fell to 4.9% in the first quarter and CPI reached 2.2% y/y in the fourth quarter of 2016.

The Reserve Bank of New Zealand mentioned that the increase in headline price growth was mainly due to higher tradable inflation, particularly petrol and food prices. This was viewed as only temporary and that it may lead to some variability over the year ahead. However, the longer-term view is that prices are anchored at around 2 percent.

Looking ahead, the central bank reiterated that monetary policy will remain accommodative for a considerable period. Interestingly, they removed the international outlook as one of their numerous reasons for uncertainty remaining. In the last monetary policy statement, it was referenced to as being a particular threat.

The RBNZ forecasts that the average official cash rate will rise in the third quarter of 2019. The markets were seeing this happening earlier, by early next year in fact. With 2-year local bond yields tumbling as the announcement crossed the wires, hopes of any near-term rate hikes seemed to have been thrown out the window.

New Zealand Dollar Tumbles as RBNZ Disappoints Rate Hike Bets

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES